MCBHosts Mortgagee Compliance Conference

Reaching Out to Mortgagees for Stronger Partnerships
Issue 15. April 2014
MCB Hosts
Mor tgagee
Compliance
Conference
Inside This Special
Conference Issue:
•
•
•
•
Photo Galler y
Common Q&A
L i s t o f To p i c s
Conference Sur vey
Reaching Out to Mortgagees for Stronger Partnerships
Issue 15. April 2014
MCM UpDate is published by Michaelson, Connor & Boul to provide news, information, and tips on how Mortgagees and
Servicers can avoid the issues that cause delays in processing property conveyance to HUD. Our communication goal is to
help Mortgagees and Servicers understand the MCM processes and improve the way the various transactions are submitted
for pre- and post-conveyance activities.
Special Conference Issue
MCB-Hosted Industry Conference
3
MCB and Oklahoma City hosted first Mortgagee Compliance Conference.
Common Conference Q&A
8
A few of the issues discussed during the Q&A sessions.
On the Conference Agenda
9
List of topics in each MCM area that was presented.
The Survey Said!
Photo: Dustin Harjo
9
100% of those who completed the post-conference survey said
they want to attend another MCB conference!
Who to Call? MCB List of Contacts
12
Keep this list handy when you have MCM questions.
Visit mcbreo.com to subscribe to MCB’s MCM UpDate
If you missed an issue, all past newsletters can be downloaded.
http://www.mcbreo.com/contracting/mortgagee-compliance-manager/
MCB Hosts First Mortgagee Compliance
Industry Conference
Theme of “Navigating Change Together Through Partnerships” brings Mortgagees,
HUD and MCB together to learn best practices on MCM processes.
Oklahoma City – home of Thunder
basketball and a thriving new metro –
was the venue where MCB hosted 100
representatives from lender
organizations and their field service and
claim vendors for the first-ever
Mortgagee Compliance focused
conference on April 2-3.
The theme “Navigating Change
Together Through Partnerships”
underscores MCB’s intent to be active
partners with the industry and provide
assistance with the various compliancerelated activities needed to manage
FHA portfolios. In keeping with the
theme, MCB’s conference objectives
were to help Mortgagees to:
• have a better understanding of the
MCM processes,
• gain efficiencies in providing the
right types of supporting
documentation, and
• submit higher quality requests and
appeals.
The better Mortgagees understand the
many, often complicated processes, the
more successful they will be in
conveying properties to HUD in a
timelier manner, and in the proper
conveyance condition.
Conference photos start on the next page. All
photos (except where indicated) are courtesy of
Dustin Harjo.
MCM UpDate
Published by MCB
View of Oklahoma City’s downtown skyline.
Photo taken by Dustin Harjo.
-3-
April 2014
MCB Shares Experience and Best Practices
As part of her opening remarks,
MCB’s Chief Operating Officer, Gail
Hyland-Savage shared that MCB
processed more the 3 million
transactions since beginning MCM work
in April 2010.
With that much experience, MCB
directors and managers were able to
provide Mortgagees and their vendors an
“inside look” at best practices for all
MCM areas.
MCB’s Chief Operating Officer, Gail Hyland-Savage welcomes
attendees with opening remarks.
Mortgagees were able to see how good
quality submissions could have a more
favorable outcome for them. Adequate
and the right kind of supporting
documentation, along with the best way
to attach photos so nothing is
overlooked, was mentioned in all
presentations. Each presentation was
followed by lively Q&A sessions to give
ample opportunity for discussion.
“We’re proud of our highly trained
staff and efficient operation that
allow us to maintain high standards
of compliance and accuracy while
keeping up with volume.”
- Gail Hyland-Savage
Special HUD Guests (L to R): Matt Martin, Ivery Himes and
William Collins (not pictured is Keith Clay and Kathi Cheatham).
MCM UpDate
Published by MCB
-4-
April 2014
Pre-Conveyance presenters (L to R) Justin Park, PreConveyance Manager and Ryan McDoulett, PreConveyance Director, discuss the process for submitting
Over-allowable, Extension and Surchargeable Damage
Requests.
MCB’s Welcoming Staff (L to R): Regina Gotbaum,
Aubree Boul and Joseph Bagby.
Photo by: Marji Pittman
Photo by: Marji Pittman
Pam Pounds, Mortgagee Relations Director (left) gives an overview of the Mortgagee
Relations functions, and Dustin Harjo, Administrative Remedies Manager (right), tells the
story of how incomplete documentation on an Overallowable appeal had a financial impact
to the Mortgagee.
MCM UpDate
Published by MCB
-5-
April 2014
Mary Cambero, Part A and Reconveyance Director, explains the conveyance process and
the items required on the 27011A.
Pictured Right:
Sheree McClure, Title
and Part B Claims
Director, (standing
far right) and Amie
Rother, Part B
Claims Manager,
present best practices
when assembling the
Part BCD claim
package.
Pictured Left:
Gwen VanEvery, Title
Manager, explains
common title issues, and
ways to cure rejected title
packages.
MCM UpDate
Published by MCB
-6-
April 2014
Pictured Above and Below Left:
Kerry Neterer, MCB Executive Director and MCM
Project Manager, conducts one of many Q&A sessions.
Matt Martin, Director of the National Servicing Center
for HUD, addresses a question from the audience.
Mary Lou Wiles, Deputy Project Manager (standing left) and Gail Hyland-Savage,
enjoy a light moment with Keith Clay and Kathi Cheatham from HUD.
MCM UpDate
Published by MCB
-7-
April 2014
Common Conference Q&A
In preparation for the conference, MCB solicited topics from potential attendees so that
they would be incorporated into the Program Agenda as appropriate. Then, over the
course of the two-day conference, a total of eleven (11) time slots on the Program
Agenda were dedicated to a question and answer period. Here, we’ve highlighted just a
few of the topics that were discussed.
Q:
How do we provide notification if damage is found at First Time Vacancy?
A:
ML 2010-18, Exhibit A, Section 3 provides the guidance for conveying damaged
properties due to mortgagor neglect. Property condition must be fully documented at the
initial inspection. On the 27011A, the “Mortgagee Comments” section must include a
description of the damage.
Q:
What is the difference between “broom swept condition” and “conveyance condition”?
A:
“Broom swept condition” (BSC) is part of the standard for acceptable conveyance
condition. BSC is described as being free from dust, dirt, hazardous materials or
conditions, personal belongings, interior and exterior debris.
“Conveyance condition” is described as being free from damage resulting from fire,
flood, earthquake, hurricane, tornado, or mortgagee neglect. Property must be secured,
lawn maintained, winterized (if applicable), free from interior and/or exterior debris, and
in broom-swept condition. (Reference ML 2010-18).
Q:
Can we get a list of MCB contacts for points of escalation and other questions?
A:
A list of relevant MCB contacts is printed on the last page of every MCM UpDate
Newsletter. In this issue, please see page 12.
Q:
What kind of documentation do you need for an HOA/Condo Variance?
A:
According to ML 2013-18, the Mortgagee needs to exhaust all methods of obtaining and
paying outstanding HOA fees. Submitting a variance request is through the
Surchargeable Damage function in P260. Some of the documentation that should be
submitted include:
• HOA contact and address information.
• Documentation supporting the various types of contact activities attempted.
• Clear explanation of what was attempted to obtain payoff or payment information
from the HOA.
MCM UpDate
Published by MCB
-8-
April 2014
On the Conference Agenda
Following opening remarks, the conference got underway
with the most pertinent MCM topics covered.
Pre-Conveyance
• Overallowable Requests and Appeals
o Violations
o Specialty Requests
o Cycle of Resubmit vs. Appeal
• Extension Requests and Appeals
o Pre and Post Conveyance Extensions
o “Cookie Cutter” Reasoning
• Surcharge Requests and Appeals
o Demolition and Convey as Vacant Lot
o Unfinished Renovations
o Common Appeal Trends
• Q&A
Part A
• 27011A Form
• Soft/Hard Edits
• Non-Compliance Notices
• Q&A
Reconveyance
• Reconveyance Triggers
• The Reconveyance Process
• Q&A
Reconveyance Appeals
• Appeal Process
• Title, HOA and P&P Reconveyance Appeals
• Escalation Process
• Q&A
Re-Acquisition
• The Re-Acquisition Process
• Supporting Documentation
• Claim Submission
• Q&A
Title
• The Title Package
• Common Reasons for Rejection
• Curing a Rejected Title Package
• Q&A
Part BCDE
• 27011BCDE Form
• Best Practices
• Q&A
Demand Appeals
• Demand and Appeal Process
• Case Examples and Best Appeal Practices
• Escalation Process
• Q&A
MCM UpDate
Published by MCB
-9-
The Survey Said!
At the end of the conference, more
than half the group stayed to
complete feedback forms on what
they liked – or didn’t like.
We were pleased to know that 100%
of those surveyed said they would like
to attend a future conference, and
98.3% said the information was
useful to their company.
In their own words…
“Very helpful. Do it again.”
“The conference was well put together
and extremely educational.”
“I really enjoyed the Q&A feedback.
A lot of useful information was
provided that was not listed on the
agenda.”
“I was very impressed with the level
of detail provided by each presenter.”
“This was wonderful. Lots of great
info being sent back to the office!”
April 2014
MCM Messages for Field Service Managers
Reporting Damaged Properties – Potential Need to Reconvey
Field Service Managers – please note the process for submitting reconveyance requests due to
damaged properties:
• Upon discovery of a damaged property, the FSM should ensure the HPIR is uploaded to P260.
• Supporting documentation should be uploaded in P260 within the HOM 7 Disposition.
• Once the HOM 7 Disposition is approved, the case will be assigned to an MCB staff reviewer
for review.
• MCB will review, request additional documentation from the Mortgagee and FSM if needed,
and begin the review process.
• MCB will notify the FSM and their GTR of the decision via P260.
• If the reconveyance is approved, MCB will email the FSM requesting the case be reanalyzed in
P260 so it can be moved to HOM 3. The FSM must notify MCB once this has been done.
• We recommend checking P260 to find out the status of your request (see also How to
Determine the Status of a Reconveyance, below).
How to Determine the Status of a Reconveyance
• Check the email history, notes and/or the Communications Log in P260 for dates and types of
communications that occur between the MCM and Mortgagee. For example:
o Date of the Preliminary Notice of Intent to Reconvey
o Date of the Billing Letter
o Date of the Notice of Intent to Administrative Offset
o Appeals submitted by the Mortgagee; Appeal decisions rendered by the MCM
Placing Properties in HOM 3 in P260.
Although FSMs have the P260 capability to move properties in and out of HOM status, please do not
perform this function for any Mortgagee related issue - leave this function to the MCM. It is the
MCM’s responsibility to initiate reconveyance when appropriate and the MCM will perform this step
in P260. Upon doing so, we will notify the HOC GTR and the FSM.
The FSM is responsible for preserving and protecting the property throughout the reconveyance
process.
MCM UpDate
Published by MCB
- 10 -
April 2014
MCM Messages for Field Service Managers
MCM Requests for Surcharge Inspections/Estimates:
When the MCM requests a surcharge estimate/inspection from the FSM, it is generally to determine
the actual dollar amount of damage that exists at the property. In some cases the FSMs are sending
back a recommendation to demo, or a bid to demo if the property is too damaged to repair.
In these scenarios, we are already aware of the property condition and need the estimates to determine
the potential dollar amount to demand from the Mortgagee. Please provide an itemized cost estimate
to repair that is calculated by cost estimating software; this document will serve as supporting
documentation to demands that are issued to Mortgagees. The current HPIR form being used with the
cost to cure section filled out is not detailed enough and is not sufficient to be used as documentation
to support a demand.
Continue to send HOA and Utility issues to: [email protected]
How to Send a Demand Request to the MCM:
• Upload supporting documentation to P260 as an attachment under the category “Accounting”
and sub-category “Reimburseables”. Label the description as “Supporting Documentation for
Demand”.
• Through P260, send an email to [email protected].
o If there are multiple charges for different expenses for the same case, send only one
email and list all the charges to be itemized – not a separate email for each charge.
• Format the Subject Line of the email as case number, reason for demand and dollar amount.
Example:
“123-456789: Water Charge, $15.75”
• In the body of your email, state the amount that is due from the Mortgagee, and ensure the
calculations are clear. Also state that supporting documents are in P260.
• Make sure your documents and calculations clearly support the dollar amount demanded.
• MCB will review your request and issue the necessary demands.
The MCM Email Boxes are for Notification Only!
Be sure to upload the attachments to P260 – do not send with the email.
No need to send screen shots of P260 within your email; this adds to the file size.
Field Service Managers may send suggestions for topics of interest and request additional personnel to
be added to the MCM UpDate distribution to: [email protected]
MCM UpDate
Published by MCB
- 11 -
April 2014
Resources
MCB Points of Contact
MCM UpDate Issues
MCB Customer Service
Reconsideration/Rescission Requests:
Demands/Reconveyances
Voluntary Reconveyances
Re-Acquisition (return a property to HUD
inventory)
Notification of Violations
HUD Web Page on MCM
HUD FAQ’s for P260 Internet Portal
http://www.mcbreo.com/contracting/mortgagee-compliance-manager/
http://www.mcbreo.com/contracting/mortgagee-compliance-manager/
[email protected]
Contact List for FSM and AM Contractors
http://www.hud.gov/offices/hsg/sfh/reo/mm/mminfo.cfm
Yardi Help Desk for P260
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
http://www.hud.gov/offices/hsg/sfh/nsc/mcm.cfm
http://www.hud.gov/offices/hsg/sfh/nsc/mcmfaqsII2010.pdf
MCB Contacts
Preconveyance, Surcharge and Emergency P&P Requests
Susan Sipe
(405) 595-2024
[email protected]
Justin Park
(405) 585-2023
Justin.park@mcbreo,com
Ryan McDoulett
(405) 595-2025
[email protected]
Part A Claims
Leana Lim
(714) 230-3620
[email protected]
Part BCDE Claims
Amie Rother
(405) 595-2018
[email protected]
Sheree McClure
(405) 595-2032
[email protected]
Title
Gwen VanEvery
(405) 595-2016
[email protected]
Reconveyance/Reacquisitions
Cynthia Diaz
(714) 230-2390
[email protected]
Appeals for All Request Decisions, Demands and Reconveyances
Dustin Harjo
(405) 595-2012
[email protected]
Occupied Conveyance
Greg Nelson
(405) 595-2020
[email protected]
MCM UpDate
Published by MCB
- 12 -
April 2014